Right now many people are faced with the situation of foreclosure. Over 11 million homes have been foreclosed on in the past 2 years and it is estimated another 13 million will be foreclosed in the near future. Losing a home is not fun, especially when you and your family finally have the dream home that you all have been looking for. There is nothing like getting kicked out of your home and being forced into moving with your relatives or a small apartment. The good news is that you can actually get help from your lender or another bank by writing what is called a hardship letter along with an application for a loan modification. Writing a hardship letter is not complicated however, there are some things that you need to know in order for it to bring you the best results.
The first thing that you want to keep embedded in your mind is keep your hardship letter short and to the point. When you submit your hardship letter to the bank, the person who reads it has a thousand other letters to review besides yours. Keep your letter at about a page and no more than 2 pages. You will want to spill your tears out to the bank but remember the longer the letter, the more likely they will put it at the bottom of the pile.
When you start your hardship letter you want to state the changes that have taken place in your life. Talk about what happened that is different from when you first received your loan. Your hardship may be divorce or the renters backed out on you. Your situation may be that the homes that are in your geographical area are dramatically lower in value than what it was when you started paying on it. Whatever the case may be state that at the beginning of your letter. Believe it or not, banks actually want to get wrongful loans off the books. Truthfully, the lender, the loan officers, and the borrower are all equally at fault for certain loans. This holds mostly true to adjustable rate loans. It’s really easy to push a 3% interest and pump a borrower up into thinking that they can buy an investor home on interest only. The problem is when the interest goes up, the borrower is in trouble which in turn loses money for the lender.
So remember state your case and be short and sweet with your hardship letter. Don’t forget to thank the lender at the end of your letter for at least taking the time to hear your situation. And the last golden rule, never copy and paste another person’s hardship letter from the Internet or anywhere else. Let the bank know that your situation is unique and you sincerely need a helping hand.
Although a proper hardship letter is a good step toward achieving your home loan modified, there are more steps and pitfalls that homeowners can fall in to. Homeowners need to learn the subject in and out, know the vocabulary that shows you know what you are talking about so that the lender will not take advantage of you again.
The best solution is getting a do it yourself loan modification kit. One such kit is 60 Minute Loan Modification. It include a professional hardship letter outline that will catch your lenders attention, it also includes conversation between homeowners and representatives, so that you can hear what to say and more importantly what not to say. The kit will teach you all the needed vocabulary, and most importantly the kit was created by a person who modified five of his home loans, and numerous loans of his clients. Many people used this kit with success, and overall it’s a great product.